Five Different Methods of Borrowing Money

Have you ever run out of cash and you have bills to pay? It happens. But there’s no need to stress yourself. Maybe you had an emergency that took away all your money, or perhaps you didn't budget well. Whichever the circumstance that brought you to this situation, it’s not time to complain but to look for the money, pay your bills and learn a lesson of having extra cash aside for emergencies. Here are various ways you can borrow money;

1. Borrow from friends and family

If you urgently need money and you don't have any at hand, you can ask your closest friend or family to lend you some. Though some people may be uncomfortable borrowing from their relatives and friends, it is the quickest way that you can get money. However, not everyone will trust you with their money and so don’t be surprised if a couple of them gives you a negative reply. Remember to pay back on time to protect your relationship.

2. Credit cards advances

Not all shops outlets accept payment through credit cards. If you have run out of your groceries and you have no cash, your credit card can save you. You can get money advance from an ATM if you have your card pin or direct from the bank very quickly. However, be ready to pay a higher interest rate than usual.

3. Bank loan

Banks can also lend you money if you’re in need. You can apply for a personal loan from your bank. The personal loan requires no collateral; its interest rate depends on the amount that you borrow. However, the bank will check on your credit to prove that you’re able to repay. If you want a lot more money, you ‘ll need to have a guarantor and collateral to acquire financing. Failure to compensate, your home or any other item you used as insurance is at risk.

4. Payday loan

Many companies are offering emergency loans online. This loan is called payday loan and is payable within a month or two weeks. To qualify for payday application, you must submit your identification card as well as your photo. The company in charge is also supposed to prove that you’re financially stable to repay the money without any difficulty. However, most of them fail to do so, lending money to borrowers who struggle to pay back. In such cases, a borrower can claim their payday loan refund. Wondering What is a payday loan refund? It’s the full interest and fees the lender charged you.

5. Paycheck advance

Another alternative to get quick cash is by letting your employer know about your situation and requesting them to pay you in advance. The money you get will, however, deducted from your salary.

Anybody can find himself or herself broke at the time of need. So, there is nothing to worry about. If you are in such a situation, pick one of the above methods and get some cash to keep you going as you look forward towards your salary. Remember to repay your loan to avoid more charges.